Brenda Lyle – Florida Today
Q: How can I protect my retirement savings?
A: A nagging concern for many people is that they might outlive their retirement savings.
We all want the retirement lifestyle of our dreams, but how? While many books have been written on the subject, we’ll make a few key points here — and assume your savings are invested.
Your nest egg
Your nest egg is the money set you aside for retirement, along with investment earnings generated by that money. During your earning years and into retirement, you may want to get some professional help with managing investment risks, using appropriate investment strategies and managing expenses.
Your Income Floor
The income floor is the money you have to live on (deposits in your bank account every month), excluding contributions from your investments. A financial planner may be able to help increase your income floor with an annuity or other financial products. Don’t forget an emergency fund that covers six months of your living expenses in savings.
When to take Social Security
Your social security and other income sources make up your income floor in retirement. When to start taking social security is part of your retirement strategy (and a beefy subject in itself). While delaying SS payments will mean higher guaranteed lifetime income, your health situation and life expectancy must be part of the equation, too.
Withdrawing from the nest egg
Unforeseen health expenses can really make a dent in your retirement savings. Finding an insurance plan that will minimize your out-of-pocket costs when you need to access to healthcare is key. Long-term care can be especially tough on your nest egg. Talk with your financial advisor or insurance professional about long term care insurance. Likewise, estate planning attorneys have long term care strategies to protect your nest egg.
Required Minimum Distributions (RMD)
Your RMD is the minimum amount you must withdraw annually from certain retirement accounts once you reach a specific age. Generally, the withdrawals from traditional IRA, SEP IRA, SIMPLE IRA, and retirement plan accounts start when you reach age 72. The IRS calculates your RMD, based on your age and life expectancy. Financial planners can customize distributions from your nest egg, based on your lifestyle and portfolio, with an eye toward minimizing your tax burden.
The fear of outliving your savings or being unable to financially weather a health condition is a very real concern for many seniors. One Senior Place provides access to a group of professional advisors to help you protect your nest egg. Review the list of upcoming financial seminars at OneSeniorPlace.com or call 321-751-6771 in Viera.
One Senior Place is a marketplace for resources and provider of information, advice, care and on-site services for seniors and their families. Questions for this column are answered by professionals in nursing, social work, care management and in-home care. Send questions to AskOSP@OneSeniorPlace.com, call 321-751-6771 or visit One Senior Place, The Experts in Aging. Brenda Lyle is a Certified Care Manager and Certified Dementia Practitioner with One Senior Place, Greater Orlando.
